How I'm launching a new brand on Amazon in 2021...

Thread

A few notes from 2020

- Everyone spent way more time at home than anywhere else
- I personally realized my apartment felt/looked like a prison cell
- Kids now more than ever want dope shit in their rooms, especially shit they can show off on Zoom

With this in mind, I'm building a brand that satisfies the emotional desire for comfort and the biological desire for aesthetics.

Humans like comfort.

Humans love shit that looks cool/shiny/bright.

Everyone loves having something they can show off.

So I'm gonna focus my efforts there from a product and branding perspective.

Let's get started.

The product in mind is a lighting feature.

If you haven't noticed already, these lamps have been advertised everywhere this year.

Why? Because they're fucking dope. They also hit all 3 of my points.

Ambience of comfort.

Aesthetically pleasing.

Great for showing off.

Everyone would love to have this in their home or office.

It changes the entire vibe.

And if you think lighting isn't a big deal, explain to me why concert venues and artists spend millions for setups like this.

And it's not just concerts.

You don't have to walk too far in your neighborhood to find a house that looks like these.

Aesthetics and showmanship are biological.

We like shiny objects and we love showing em off even more.

So with that in mind. I'm looking at LED products that appeal to both children and adults.

Here's a few ideas I stumbled upon.

For kids:
LED moon lamp
Bed underglow
Ceiling LED strips

For adults:
Shower LEDs
Kitchen counter lighting
LED corner lamps

I'm gonna focus on something that kids enjoy.

Parents love their kids and want them to be happy and comfortable.

They'll sacrifice their own comfort for their children.

So if kids are stuck inside longer, lets make their rooms dope as fuck for zoom calls and Twitch streams.

LED Moon lamps are ripe for the picking on Amazon.

There isn't much competition and everyones racing to the bottom.

First page average price is $24.99. Stupid low for this product.

Lower priced products often raise eyebrows.

"is it cheaply made?"
"does it lack functionality?"

I know I can bank on Amazon with this product.

I'm not surprised that these two listings that are well above the average price have much higher review counts.

Cheap prices are associated with cheap products.

Those two listings proved the product can sell for at least $30.

Now I go over to Alibaba and browse a few listings.

I'm gonna order samples ($150-$200) to test the product and handle quality assurance.

After that, I know I can negotiate down to $4/unit.

Once I test samples, I hit up the supplier, negotiate the price and order 50-100 units.

With freight and package design I expect to pay $500-$750.

50 units = $10/pc
100 units = $7.50/pc

These prices are estimates and likely higher than what I would pay.

Now I'll check the FBA profitability calculator.

https://sellercentral.amazon.com/fba/revenuecalculator/index?lang=en_US

I'll put in a sample listing and punch in my numbers.

At a $10 cost and $30 price these are my margins.

FBM: $18.05 or 54.7%
FBA: $5.17 or 17.3%

At a $7.5 cost and $30 price these are my margins.

FBM: $20.55 or 62.3%
FBA: $7.67 or 25.57%

Jungle Scout shows an average monthly sales volume of 4232 units.

I can grab 5% of those sales within 60 days no problem and I'll move 211 units in those 60 days.

211 x $7.67 = $1618 rev.

My first order pays for itself and now I can order more at a better price.

What happens with these first 211 units sold?

Every customer gets a hand written thank you note from me with an email and phone number for questions/concerns/issues, etc.

It also means I'll likely get a 5% conversion rate for reviews, if not more.

At that rate I'll be blow past the average review count on the first page within 6 months.

I'll likely land on the first page within 90 days.

And from there its a matter of not fucking up before I hit critical mass.

Once that happens, I'll tell my supplier I'll be ordering units on a regular basis.

This gives me more negotiating power, a steady flow of inventory and the comfort for cash infusions to grow faster.

I'll keep this up through 2021 and by next December will hit 6 figures.

The brand becomes a well oiled machine.

Supplier preps, freight forwarder ships direct to Amazon, I send 50-100 thank you notes every month.

Customers love me.
I get a gold mine of feedback.
I launch a brand website.
I collect emails for retargeting.

And its a wrap.

This is my exact game plan for Amazon 2021.

I go even more in depth in my Amazon Master Class which is currently on sale.

Go to http://theamzmasterclass.com  and use code "BIGWINS" for $250 off right now.

And go to http://asad.space  to sign up for my newsletter.

Heres a testimonial from my top student.

A guy who had never touched ecom before that did $225k at 45% margins in his first year, all from my course.